Avnet, Inc. (AVT)
Technology · NMS · US
Fundamentals
Valuation and ratings
Avnet, Inc. trades at USD86.21, which is 16% above the USD72.41 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 29 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Avnet, Inc.
Avnet, Inc., distributes electronic component technology in the Americas, Europe, the Middle East, Africa, and Asia/Pacific. It operates through two segments, Electronic Components and Farnell. The company markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated and embedded components from electronic component manufacturers. It also offers design support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions which provides support, warehousing, and logistics services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, the company provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions, as well as embedded display solutions comprising touch and passive displays; and develops and produces standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. It serves various markets, such as automotive, defense, aerospace, medical, telecommunications, industrial, and digital editing. Further, it distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.
AVT passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Richard Pzena, PZENA INVESTMENT MANAGEMENT LLC$350.76M · 1.1% of book
- Greenhaven Associates, GREENHAVEN ASSOCIATES INC$241.58M · 4.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$231.46M · 0.1% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$46.71M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$45.27M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Avnet, Inc. (AVT) undervalued?
Against our discounted cash flow estimate of USD72.41, AVT at USD86.21 is 16% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own AVT?
14 of the institutions we track reported a position in AVT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is AVT's P/E ratio?
AVT trades at 33.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for AVT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.